Intrinsic and Extrinsic Needs and Rewards

1. Intrinsic and ExtrinsicNeeds and Rewards • Intrinsic - Higher needs, Internal • Accomplishment, competence, fulfillment, self-determination received from the process of action • Extrinsic - Lower needs, External • Material comfort, safety, security given by another person

2. Content vs. Process Motivation Theories • Content theories • explain why people have different needs at different times • Process theories • describe the processes through which needs are translated into behavior. Process theories try to explain why and how people are motivated.

3. Basic Model of Motivation

4. Needs Hierarchy Theory Needs HierarchyTheory • Maslow arranged five needs in a hierarchy • Satisfaction-progression process • People who experience self-actualization desire more rather than less of this need Self- Actualization Esteem Belongingness Safety Physiological

5. Maslow’s Hierarchy of Needs

6. Acquired Needs Theoryby David McClelland • Need for Achievement -Desire to accomplish something difficult, attain high standards of success, master complex tasks, surpass others • Need for Affiliation -Desire to form close personal relationships and friendships, avoid conflict • Need for Power -Desire to influence or control others, be responsible and have authority over others

7. Frederick Herzberg Two-Factor Theory Highly Satisfied Neither Highly Dissatisfied Motivators influence level of satisfaction Motivators Achievement Recognition Responsibility Work itself Personal growth Hygiene Factors Work Conditions Pay/security Company Policy Supervisors Interpersonal Rel. Hygiene factors influence level of dissatisfaction

8. Implications of Content Theories • Balance competition/cooperation by rewarding individual achievement and teamwork • Offer employees a choice of rewards • people have different needs at different times • Support the drive to learn by providing new learning opportunities • Don’t rely too much on financial rewards

9. Key Elements ofExpectancy Theory Will putting effort into the task lead to the desired performance? Will high performance lead to the desired outcome? Are the available outcomes highly valued?

10. Assumptions - Expectancy • Workers are motivated to receive positive outcomes and avoid negative ones • Workers are rational, careful processors of information • Workers can make choices about how they behave, act, and how much effort they exert

11. Expectancy Theory in Practice • Increasing the E-to-P expectancy • training, selection, resources, clarify roles, provide coaching and feedback • Increasing the P-to-O expectancy • Measure performance accurately, explain how rewards are based on past performance • Increasing outcome valences • Use valued rewards, individualize rewards, minimize countervalent outcomes

12. Equity Defined • A State of psychological comfort • Exists when an individual’s input to outcome ratio is equal to the ratio of the comparison other

13. Elements of Equity Theory • Outcome/input ratio • inputs -- what employee contributes (e.g. skill) • outcomes -- what employees receive (e.g. pay) • Comparison other • person/people we compare ratio with • not easily identifiable • Equity evaluation • compare outcome/input ratio withthe comparison other

14. Outcomes Overreward Inequity Outcomes Inputs Inputs Outcomes Underreward Inequity Outcomes Inputs Inputs Overreward vs Underreward Inequity Comparison Other You

15. Consequences of Inequity • Change inputs • Change outcomes • Change perceptions • Leave the field • Act on the comparison other • Change the comparison other

16. Equity Sensitivity • Benevolents • Tolerant of being underrewarded • Equity Sensitives • Want ratio to be equal to the comparison other • Entitleds • Prefer receiving proportionately more than others

17. Goals are Motivational • Because you can choose where you want to go • You know exactly what to do • Can provide short and long term vision • Fosters planning and resource evaluation

18. Specific Relevant Challenging Task Effort Task Performance Commitment Participation Challenging Effective Goal Setting

19. Effect of Goal Difficulty on Performance High Area of Optimal Goal Difficulty Task Performance Low Moderate Challenging Impossible Goal Difficulty

20. Outcomes of Goal Setting • Greater productivity and sales • Improved performance • Improved self-confidence • Increases motivation to achieve • Increases pride and satisfaction • Helps reduce negative attitudes toward work/increases morale

21. Research Suggests: Those who use Goal Setting • Suffer less from stress and anxiety • Concentrate better • Show more self-confidence • Perform better • Are more satisfied with their jobs

22. Behavior Modification • We “operate” on the environment • Alter behavior to maximize positive and minimize adverse consequences. Behavior is a function of its consequences • Operant means voluntary or learned behavior as opposed to reflexive or unlearned behavior • Law of effect • Likelihood that an operant behavior will be repeated depends on its consequences

23. Antecedents What happens before behavior Behavior What person says or does Consequences What happens After behavior Attendance bonus system is announced Employee attends scheduled work Employee receives attendance bonus A-B-Cs of Behavior Modification Example

24. Reinforcement Perspectiveon Motivation • Positive Reinforcement – increase strength and frequency of a behavior by providing something pleasing • Negative Reinforcement – increase strength and frequency of a behavior by the removal or avoidance of a consequence (stop criticizing and good performance results) • Punishment – decrease strength and frequency of a behavior by giving the employee something displeasing or taking away something pleasing • Extinction – decrease strength and frequency of a behavior by providing no consequence

25. Contingencies of Reinforcement Consequence is Introduced No Consequence Consequence is Removed Behavior Increases/ Maintained Positive reinforcement Negative reinforcement Punishment Extinction Punishment Behavior Decreases

26. Behavior Modification Limitations • Can’t reinforce nonobservable behavior • Reinforcer tends to wear off • Variable ratio schedule is a form of gambling • Ethical concerns about perceived manipulation

27. OrganizationwideMotivational Programs • Employee ownership - Psychological, stock • Pay for knowledge - Skills possessed • Gainsharing - Teamwork • Pay for performance - Results • Job enrichment - High level,more tasks